Bangladesh Bank on Monday issued a rule saying that the scheduled banks could not purchase immovable properties if the value of their existing fixed properties crossed 30 per cent of their paid-up capital.
To this end, the BB issued a circular to managing directors and chief executive officers of all the banks saying that the banks, which existing immovable assets’ book value crossed 30 per cent of their paid-up capital, would have to increase their paid-up capital in accordance with their immovable properties.
The respective banks will be able to purchase new immovable properties when they will increase their paid-up capital against their existing immovable properties, the circular said.
The book value of the immovable properties of the banks cannot cross 30 per cent of the banks’ paid-up capital in accordance with the Article 10 under the Bank Company Act-1991, the BB said in its circular.
The BB had earlier said that the banks could not purchase any land, building or floor space of a building or take lease of the properties for 10 years or above. The circular was published on July 25, 2012.
The circular had said that the banks could purchase floor space or take lease the properties to set up their branches under the city corporation area with taking prior permission from the central bank.
-With New Age input
